White House says it may ban bitcoin mining

Bitcoin mining in the United States may be banned, according to a document recently released by the White House. Regulators and lawmakers can analyze whether to ban bitcoin mining activity in the future if it continues to be energy intensive. Instead, this does not happen to cryptocurrencies that operate on a Proof of Stake (PoS) consensus algorithm and do not require mining activity to secure the network.

Bitcoin mining in the United States may be banned, according to a document recently released by the White House. Regulators and lawmakers can analyze whether to ban bitcoin mining activity in the future if it continues to be energy intensive. Instead, this does not happen to cryptocurrencies that operate on a Proof of Stake (PoS) consensus algorithm and do not require mining activity to secure the network.

Can Bitcoin Mining Be Banned?

Bitcoin mining may be banned if it represents a risk to the environment due to its carbon footprint.the white house announced report Called Climate and Energy Implications of Crypto-Assets in the US, it discusses how different consensus algorithms work and their impact on the environment.

One thing the report mentions is that the Environmental Protection Agency (EPA) and Department of Energy (DOE) are working with other agencies to ensure the “responsible development” of digital currencies. This means that we need to work with To develop effective environmental standards for the use of crypto-asset technology.

Additionally, agency considerations include low energy intensity, low water usage, low noise generation, clean energy use by operators, carbon-free generation, and many others. The institution wants to ensure that its mining activities reduce the environmental impact.

Nevertheless, the report continues to explain that new regulations could be put in place to limit or prohibit the use of miners if these measures prove ineffective.

In that regard, the report states:

“If these measures prove ineffective in mitigating the impact, the administration should consider enforcement action, and Congress should endorse the use of high-energy-strength consensus mechanisms for cryptocurrency mining. We may consider legislation to limit or eliminate it.”

How can proof of work help the grid?

Despite the negative public perception of proof of work and Bitcoin mining activity, there are some things to consider.

Proof-of-Work aims to reduce energy costs

Bitcoin miners are looking for different ways to reduce their energy costs. One of the best ways to do that is not to buy grid power, but to invest in renewable energy sources that are cheaper and more competitive than other miners.

Therefore, by investing heavily in renewable and cheap energy, Bitcoin Miners can reach agreements with grid network operators to increase available energy.

Grid enhancement

As mentioned earlier, bitcoin mining operators are able to sell cheap energy to grid operators during peak hours to keep the grid running without interruption. After the peak has passed, miners can reconnect and tap into the surplus energy generated by mining operators.

Bitcoin miners can therefore help stabilize the grid during peaks in energy consumption, while at the same time allowing miners to connect as soon as the peak is over and the energy used is excessive.

Finally, renewable energy providers such as hydroelectric plants and wind turbines can store surplus energy by mining Bitcoin. This can also have a very positive impact on energy markets, especially where there are large renewable energy sources.